Audit: CA City to Return $22.7 Million for Misuse of Funds

The Los Angeles Times reported that an audit of Cudahy, one of the poorest cities in Los Angeles county, revealed that city leaders mismanaged state funds and blatantly exploited the use of city-issued credit cards, running up excessive bills for travel, meals, and entertainment.

The scandalous findings were spurred by the examination of fiscal management practices from 2010-2012. As a result of the audit, the controller’s office demanded that the city return $22.7 million in redevelopment funds.

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Moreover, the Press Telegram reported that Controller John Chiang found that the city had minimal procedures in place to prevent “corruption, abuse and fiscal mismanagement.” Chang added that the “the few rules that did exist were not followed, and questionable spending was rampant.”

The audits were prompted by last year’s federal corruption trial regarding the shakedown of the owner of a marijuana dispensary. Three Cudahy city officials, including the mayor, were convicted of election fraud and bribery and for employing city workers as armed body guards for council members.